How Roth IRA Contribution Limits Work: MAGI Phase-Out Explained

What Makes the Roth IRA Contribution Limit Unusual

Most contribution limits — 401(k), HSA, traditional IRA deduction — reduce to zero at some income, or have a hard cutoff. The Roth IRA works differently: there is a base dollar limit that applies at lower incomes, a phase-out range where the allowed contribution shrinks linearly, and a hard ineligibility threshold above which no direct Roth IRA contribution is allowed.

The three-zone structure means that the answer to “how much can I contribute to a Roth IRA?” depends entirely on income — a household with modest income gets the full limit, one with income in the phase-out range gets a partial limit, and one with high income may get nothing.

This guide covers the 2026 figures and the mechanics of the phase-out calculation. The direct contribution limits and MAGI phase-out ranges are the only items in scope — backdoor Roth conversions and recharacterizations are different mechanisms and are not covered here.

The 2026 Contribution Limits

The IRS sets Roth IRA contribution limits annually based on inflation adjustments under the Internal Revenue Code. For tax year 2026:

The $1,100 catch-up contribution for individuals 50 and older is on top of the base $7,500 limit. Note that the catch-up amount itself increased in 2026 (from $1,000 in 2025) as a result of SECURE 2.0 Act provisions indexing the catch-up to inflation. Source: IRS Rev. Proc. 2025-32; IRS Notice 2025-82.

There is also an earned income limit: the contribution cannot exceed earned income for the year. A taxpayer with only $4,000 in earned income cannot contribute $7,500 — the limit is the lesser of the stated limit and earned income. Retired individuals with no earned income generally cannot contribute directly to a Roth IRA.

The MAGI Phase-Out Ranges for 2026

The MAGI (Modified Adjusted Gross Income) phase-out reduces the allowed contribution for taxpayers above the threshold. The ranges by filing status for 2026:

Source: IRS Rev. Proc. 2025-32; IRS Publication 590-A (2026 edition).

Below the phase-out start: Full contribution allowed ($7,500 or $8,600 for 50+). Within the phase-out range: Partial contribution, calculated by the formula below. At or above the phase-out end: No direct Roth IRA contribution allowed.

The married-filing-separately rule deserves special attention. If a taxpayer was married and lived with their spouse at any point during the year, the phase-out range starts at $0 — even a modest income produces a partial or zero contribution limit. Only taxpayers who were married but did not live with their spouse at any time during the year get the same $153,000–$168,000 range as single filers.

How the Phase-Out Reduction Is Calculated

For MAGI within the phase-out range, the IRS uses a linear reduction formula with a specific rounding rule (from IRS Publication 590-A / Form 8606 instructions):

Step 1: Compute the raw allowed amount.

Excess MAGI = MAGI − Phase-Out Start
Reduction Fraction = Excess MAGI ÷ Range Width
Raw Allowed = Base Limit × (1 − Reduction Fraction)

Step 2: Apply the IRS rounding rule.

The IRS rule: “If the result isn’t a multiple of $10, increase it to the next multiple of $10.” This is a ceiling rounding (round up, not round to nearest). If the rounded result is between $1 and $199, the IRS sets a minimum floor of $200 — there is no $1–$199 partial contribution; it jumps to $200.

Example: Single filer, age 35, MAGI $160,000, base limit $7,500.

Excess MAGI: $160,000 − $153,000 = $7,000
Reduction Fraction: $7,000 ÷ $15,000 = 0.4667
Raw Allowed: $7,500 × (1 − 0.4667) = $7,500 × 0.5333 = $4,000
Ceiling rounding to next $10: $4,000 is already a multiple of $10 → $4,000

Allowed contribution: $4,000. The reduction is $3,500.

Worked Example

A single taxpayer, age 35, with MAGI of $100,000:

Since $100,000 < $153,000 (phase-out start), the taxpayer is below the phase-out range and qualifies for the full contribution:

The taxpayer can contribute up to $7,500 to a Roth IRA for 2026, subject to the earned income limit.

How MAGI Differs From AGI

MAGI for Roth IRA purposes is Adjusted Gross Income (from line 11 of Form 1040) with certain deductions added back. The key add-backs are:

• Traditional IRA deduction
• Student loan interest deduction
• Tuition and fees deduction (if applicable)
• Rental losses
• Passive activity losses
• Foreign earned income / housing exclusion

For most employees with only wage income, MAGI is very close to or equal to AGI. The discrepancy tends to be material for self-employed individuals, those with rental properties, or those taking certain above-the-line deductions. When in doubt, consult IRS Publication 590-A or a tax professional to confirm the exact MAGI figure for Roth IRA eligibility.

What “No Direct Contribution” Means — and What It Doesn’t

If MAGI exceeds the phase-out end for the applicable filing status, no direct Roth IRA contribution is allowed. This does not mean:

• That a Roth IRA can’t be held at all (existing balances are unaffected)
• That Roth conversions are prohibited (converting traditional IRA funds to Roth is a separate mechanism, not subject to the contribution income limits)
• That a spouse cannot contribute based on their own MAGI if they’re below the threshold

The backdoor Roth contribution strategy — making a non-deductible traditional IRA contribution and then converting it — is a common workaround for high earners, but it involves additional tax and reporting considerations (the “pro-rata rule” when other traditional IRA balances exist) and is outside the scope of this guide.

How to Use the Roth IRA Contribution Limit Calculator

MAGI: Enter the Modified Adjusted Gross Income for the tax year. If uncertain, use AGI as an approximation; for precision, review the MAGI add-backs described above. For contribution planning before year-end, use an estimate of projected annual MAGI.

Filing status: Select the status that will apply on the tax return for the year in question. Married-Filing-Separately users should select whether they lived with their spouse at any time during the year — this distinction substantially affects the phase-out range.

Age: Enter age at the end of the tax year (December 31). This determines whether the 50+ catch-up applies. The calculator uses the age at year-end per IRS convention.

The calculator outputs:

• The allowed contribution after applying the phase-out
• The phase-out reduction amount and eligibility percentage
• The phase-out start and end for the selected filing status

Scenarios

Scenario 1: MFJ couple, both under 50, combined MAGI $230,000

MAGI of $230,000 is below the MFJ phase-out start of $242,000. Both spouses can each contribute the full $7,500 directly to a Roth IRA, for a combined $15,000 in 2026.

Scenario 2: Single filer, age 52, MAGI $155,000

The taxpayer is in the phase-out range ($153,000–$168,000) and is 50+ (base limit $8,600):

Excess MAGI: $155,000 − $153,000 = $2,000
Reduction Fraction: $2,000 ÷ $15,000 = 0.1333
Raw Allowed: $8,600 × 0.8667 = $7,453.33
Ceiling to next $10: $7,460

Allowed contribution: $7,460.

Scenario 3: MFS, lived with spouse, MAGI $8,000

The phase-out range starts at $0. With MAGI of $8,000:

Excess MAGI: $8,000 − $0 = $8,000
Reduction Fraction: $8,000 ÷ $10,000 = 0.80
Raw Allowed: $7,500 × 0.20 = $1,500
Ceiling to next $10: $1,500 (already a multiple)

Allowed contribution: $1,500. Married-filing-separately with cohabitation dramatically restricts the Roth IRA limit even at low incomes.

Frequently Asked Questions

Can both spouses contribute to a Roth IRA if only one has income? Yes. The spousal IRA rules allow a non-working or lower-earning spouse to contribute to a Roth IRA based on the working spouse’s earned income, provided the couple files jointly and has sufficient combined earned income. Each spouse contributes to their own Roth IRA (not a joint account); each is subject to the same income limits based on the couple’s joint MAGI.

Does a rollover from a 401(k) count toward the Roth IRA contribution limit? No. Rollovers and conversions are treated separately from direct contributions. Rolling over a 401(k) to a traditional IRA, or converting traditional IRA funds to a Roth IRA, does not count against the annual contribution limit. These are distinct transactions with separate rules.

What happens if I contribute too much? An excess Roth IRA contribution — contributing more than the allowed amount — is subject to a 6% excise tax each year it remains in the account. Excess contributions can be corrected by withdrawing the excess plus earnings before the tax filing deadline (plus extensions). If not corrected, the 6% penalty recurs annually. For taxpayers whose income rises unexpectedly into the phase-out range, this is a known risk to plan for during contribution timing.

Are the limits per account or per person? Per person. The $7,500 limit applies to the total of all Roth IRA contributions made during the year, across all accounts. A person can hold multiple Roth IRA accounts, but the combined contribution to all of them cannot exceed the annual limit. Traditional IRA and Roth IRA contributions share the same combined limit — if $3,000 is contributed to a traditional IRA, only $4,500 may be contributed to a Roth IRA (under 50 in 2026).

Does the contribution limit change every year? Yes, the IRS adjusts the contribution limit and phase-out ranges for inflation annually. The amounts above are for 2026; check IRS Rev. Proc. published each fall for the upcoming year’s limits.